Oregon construction firms are challenging Governor Tina Kotek’s executive order mandating union labor in state projects, claiming it is an illegal overreach of power. A coalition of contractor associations and individual firms have filed a lawsuit seeking to freeze the directive while arguing that Kotek cannot implement such changes without legislative authority or proper rulemaking. The order requires the use of project labor agreements (PLAs) in state construction projects, which are contracts between project owners and labor unions providing workers. While supporters argue that PLAs ensure quality and stability, opponents claim they reduce competition and lead to higher costs. The lawsuit alleges that Kotek exceeded her constitutional powers with the order, as it should have been approved by the Legislature or undergone proper rulemaking procedures. The timing of the order, just after a court ruled against the state’s attempt to use PLAs in highway projects, has raised suspicions among contractors. While the order took effect immediately with an exemption window until March 31, it is unclear if any state projects will proceed with a project labor agreement. Kotek’s office declined to comment on the pending litigation. The outcome of the lawsuit could have significant implications for the construction industry in Oregon.
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